Brazil’s Equatorial Energia SA said on Thursday it has agreed to buy Echoenergia in a deal that a person familiar with the matter said valued the renewable energy firm and its debts close to 10 billion reais ($1.8 billion).
Equatorial Energia said it would pay around 6.66 billion reais for Echoenergia, whose controlling shareholder is British private equity fund Actis.
Including the debts that Equatorial will assume, the enterprise value of Echoenergia will be close to 10 billion reais, the source told Reuters, asking for anonymity to discuss private negotiations.
Financial website Brazil Journal reported the deal earlier on Thursday.
Common shares in Brazil’s Equatorial Energia accelerated losses on the report and were down 3.9% in late afternoon trade in Sao Paulo at 23.44 reais.
Source: Reuters.com